“Born to Serve the Small”: Crowdfunding for SMEs

Abstract

Since ArtistShare’s launch in 2003, crowdfunding has emerged as a prominent alternative method of financing, especially for fundraisers and investors dealing in smaller quantity funding. In 2014, global crowdfunding was estimated to have raised USD $16.2 billion for various initiatives, up by 167 % from the $6.1 billion raised in 2013. In 2015, the entire industry is, once again, projected to grow to more than double its current size, reaching $34.4 billion. In Asia, the highest growth in crowdfunding volumes was 320 %, reaching an aggregated value of $3.4 billion, and Asia became the second-largest region for crowdfunding worldwide, ahead of Europe ($3.26 billion) and trailing only North America ($9.46 billion). As the fastest growing country in Asia, China has also caught onto the crowdfunding trend. As of the end of 2014, there were 128 crowdfunding platforms in 17 provinces, raising a total of over RMB 1.5 billion funds and financing over 3000 projects.